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J.P. Morgan Offers Retention Deal To Bear Reps

By Mark H. Astarita, Esq.

JP Morgan would certainly like to hold on to the Bear Stearns reps - or at least their assets...or does it?First, reps who gross less than $250,000 a year can apparently take a hike. No retention bonus for them, or at least not one that has been announced.For reps in the $250,000 to $500,000 range, the offer is 25% up front in cash, 25% in stock. For those over $500,000, the offer is 75% cash, 25% stock, up front, plus and additional 50% stock, 50% cash in three years, of the average production over those three years.Good deal? Not so much. First, that "bonus" is not entirely a bonus, it is structured as the usual forgiveable promissory note, at least on the cash side. There is some confusion (which may just be me) as to whether it is a 7 year note or a 9 year note...continue to full post

Full post as published by SECLaw.com on March 31, 2008 (boomark / email).